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The United States has applied pressure on the Thai administration to reaffirm its dedication to a truce deal with Cambodia, indicating that trade talks could be halted as attempts are made to stop a Trump-mediated peace agreement from collapsing.

Border Tensions Escalate

In recent days, Thai officials announced it was putting on hold the ceasefire deal, accusing Cambodia of planting new explosives along the mutual frontier, among them an incident that reportedly wounded a Thai soldier on duty, who suffered a foot amputation in the explosion.

Following this, one person has been killed and several others wounded by exchanges of fire along the border between the two nations, sparking fears of a fresh wave of tit-for-tat fighting.

American Economic Leverage

Over the weekend, a Thai foreign ministry spokesperson informed reporters that a official communication from the U.S. trade office announcing the suspension of trade deal talks was received on the previous evening.

The spokesperson referenced the letter as stating that discussions on trade – which are focusing on a US tariff of 19% – could resume once Thailand renewed its pledge to carrying out the joint ceasefire declaration.

“Tariff negotiations will continue and remain separate from border issues,” stated a different official representative.

Trump’s Tariff Threat

Addressing reporters on Air Force One as he flew to Florida on the end of the week, the US leader implied that he had used the “threat of tariffs” in discussions with the south-east Asian leaders.

He stated, “Today, I prevented a conflict using tariffs, the menace of duties,” continuing, “they’re doing great. I think they’re gonna be fine.”

Ceasefire Agreement Background

The President witnessed the finalization of a ceasefire agreement, conducted in Malaysian territory this October, and has promoted it as one of multiple agreements around the world he says should earn him the Nobel Peace prize.

The most severe clashes in a ten years between Thai and Cambodian troops erupted in July, with exchanges of fire, shelling and aerial attacks causing numerous fatalities and hundreds of thousands forced to flee.

Longstanding Border Dispute

The two neighboring countries have a historic territorial disagreement that originates from conflicts regarding colonial-era maps drawn up by the French. Ancient temples along the frontier are claimed by both sides.

Reuters provided input for this coverage.